I have been very critical of the Federal Reserve for the last 20 years

Marc Faber :"...As you know I have been very critical of the Federal Reserve for the last 20 years because the Federal Reserve with its expansionary monetary policies and without the policy paying attention to excessive credit growth created first the Nasdaq bubble and later on the housing bubble and in 2008 the commodities bubble. So I have been very critical of these policies for a very long time, including of course now QE2 as I was also skeptical about the success of QE1 for the simple reason that the Federal Reserve can control the quantity of the money.

In other words, Bernanke as he said and wrote the US can drop dollar bills from helicopters onto the US, but what they don’t control is where these dollar bills will flow to, and as it happens it went into bubbles in US creating over consumption, and symptom of overconsumption was then the trade and current account deficit that shifted production and capital spending overseas and shifted economic growth to emerging economies and now QE2 what it will do is essentially it will foster bubbles, in commodities, in precious metals and in the capital markets of emerging economies where the capital will flow to....."
via www.moneycontrol.com

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber on QE2

A Lot Of QE2 Has Been Discounted says Dr. Marc Faber :
Back in July/ August, investors were bearish on the market and they talked about the Hindenburg Omen and that everything would crash. What then happened was, September was very strong, October was a reasonably good month as well and the market has gone from a low on July 1st of 1010 on the S&P 500 Index, to close to 1200.

And so, a lot of QE2 has been discounted, and if you were Mr. Bernanke, I suppose you would probably disappoint investors somewhat with QE2, and watch the market reaction. If the markets really sell off, you can then increase QE2, or launch QE3, QE4, QE5 and so forth. There will be many more QE`s.


Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber outlook for Oil

Looking at the dynamics of the oil market, I think that investing in oil is quite desirable for 2 reasons:

First of all, if the optimists are right, and we have a global economic recovery, and it would appear for the time being to be the case...because during the crisis of 2008 and 2009, oil consumption in the developed world went down, but in emerging economies it continued to go up. But now, in the developed world its picking up, so total global oil consumption is rising and that will put pressure on oil prices.

But if you believe in a horror scenario, which eventually brings about high inflation and then war, oil is also very desirable because it will lead to interruptions on supply. In either case, if you are very bullish or very bearish, you should own some oil or energy equities.
via CNBC

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.